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It's my understanding that parcels are where the money is. Is that wrong? Parcel volumes in my country are up north of 150%, I'd expect similar or even higher n
by 0xy 7y ago
It's my understanding that parcels are where the money is. Is that wrong? Parcel volumes in my country are up north of 150%, I'd expect similar or even higher numbers in the US.
But if they really are dependent on letters, why? Letters are a dying business and there is no future there.
- AnthonyMouse 7y agoIt's because they have a legislated monopoly on letters. For parcels they have to compete with UPS, FedEx and others, so they have to price those competitively or they'd get no business, which means they have thin margins there and even then lose a lot of the volume to competitors. But they can't just charge arbitrarily much for letters because people would stop sending them, which is really what they're doing regardless.
- pseudalopex 7y agoThey also can't charge arbitrarily much for letters because Congress tied rate increases to the Consumer Price Index.